The transport and logistics sector is projected to slow down in 2024 and 2025 but to remain robust. The Bank of Namibia (BoN) projected in its March 2024 Economic Outlook Update that the sector is expected to grow by 6.4% in 2024 and 5.9% in 2025, following growth of 8.5% in 2023. Export performance coupled with the importation of industrial and consumer goods are anticipated to sustain the sector
ROADS
The government continues to invest heavily in the upgrading and expansion of the country’s road network and has allocated N$1.8 billion for the completion of ongoing road construction projects during the 2024/25 financial year. Major projects include the completion of the final section of 21 km between Windhoek and the Hosea Kutako International Airport, the tarring of the road from Henties Bay to Kamanjab, the rehabilitation of the 30-km-long road between Karibib and Usakos, as well as the completion of the final section of the A1 from Windhoek to Okahandja. Provision has also been made for the upgrading of various roads throughout the country.
PORTS
Cargo handling at the two ports (Walvis Bay and Lüderitz) managed by the Namibian Ports Authority (Namport) increased by 4% from 7.7 million tonnes in the 2023 financial year to 8 million tonnes during the financial year that ended on 31 March 2024, setting a new record.
The main export commodities were salt (bagged and bulk), copper concentrate, frozen fish, manganese ore and lead/ zinc concentrate. Exports of manganese ore from the port of Lüderitz increased by 15.7% and there are plans to double the export from 15,000 tonnes to 30,000 tonnes a year.
Namport signed a contract with Africa Global Logistics (AGL), which is part of the Mediterranean Shipping Company (MSC), to manage the Walvis Bay multipurpose bulk terminal in March 2024. The company is expected to improve the terminal’s efficiency and effectiveness.
In a news release, the company stated, “Through its state- of-the-art maritime, port and logistics solutions, AGL will facilitate access to Southern African Development Community (SADC) markets and invest in modern infrastructure to drive economic growth in the region. Through its projects and investments, the company also aims to create opportunities for local businesses and communities, promoting employment, innovation and sustainable development.”
LÜDERITZ PORT EXPANSION
Construction of the first phase of the Lüderitz port expansion is planned to begin in 2025, subject to the sourcing of finances and obtaining the necessary approvals. The existing quay wall will be extended by 250 m, while six hectares of land east of Shark Island will be reclaimed. The project is expected to be completed in 24 months. The expansion is necessitated by the need to handle the importation of construction materials for Hyphen Hydrogen Energy’s green hydrogen project. The port’s expansion was devised in collaboration with Hyphen and the Port of Rotterdam.
A new port and a green ammonia export facility will be built next to the existing harbour during the second phase, while the third phase is designed to increase the port’s capacity to handle the output from new green hydrogen projects.
RAILWAYS
The rehabilitation of the country’s dilapidated railway network continues to enjoy priority, with N$2.5 billion for the 2024/25 financial year provisioned for railway infrastructure. An amount of N$1.9 billion has been set aside for the upgrading of the Kranzberg-Otjiwarongo railway section and N$488 million for the rehabilitation of the Sandverhaar- Buchholzbrunn railway section leading to Lüderitz in the south. A total of N$6.6 billion has been earmarked for the railway network development over the 2024/25 to 2026/7 medium-term expenditure framework.
TransNamib has secured a N$2.6 billion loan from the Development Bank of Southern Africa (DBSA) and the Development Bank of Namibia (DBN) for the modernisation of its rolling stock. The loan will be used for buying new locomotives, remanufacturing rolling stock, modernising the TransNamib workshop and upgrading the signalling equipment.
TRANS-KALAHARI RAILWAY CORRIDOR
Twelve companies have expressed interest in funding the feasibility study, as well as developing the 1,500-km-long Trans-Kalahari Railway Corridor between the Mmamabula coal fields in western Botswana and Walvis Bay. The Botswana section will stretch to the Mamuno border post where it will link to the yet-to-be-built extension of the railway line from the border to Gobabis and the existing Namibian network. Namibia and Botswana signed a memorandum for the construction of the railway line in 2010 and concluded a bilateral agreement in 2014. Construction of the railway line, which will cost an estimated US$10 billion, is expected to start in early 2025.
AIR TRANSPORT
Namibia scored 72.13% for the maintenance of its aviation infrastructure and safety measures during the safety audit conducted by the International Civil Aviation Organisation (ICAO) from 6 to 18 March 2024. This is a marked improvement from the 2016 audit when the country achieved an overall score of 57.39%, ranking above the Eastern and Southern Africa region’s average of 60% and the global average of 69.3%.
IMPROVED AIR CONNECTIVITY
Connectivity between Namibia and Europe will be boosted following the announcement by the leisure carrier of the Lufthansa Group, Discover Airlines (previously Eurowings Discover), that it plans to introduce three direct flights a week from Munich to Windhoek from 1 April 2025.
FlyNamibia, Namibia’s first privately owned scheduled passenger airline, expanded its regional network with the launch of three flights a week between Hosea Kutako International Airport and Victoria Falls in April 2024. The airline also introduced three triangular flights a week from Hosea Kutako International Airport to Maun in Botswana, Katima Mulilo and Windhoek between July and October 2024. Direct flights to Katima Mulilo will resume in November 2024.
In another development that will boost business and leisure travel, Air Botswana announced that it plans to introduce flights between Botswana’s capital, Gaborone, and Hosea Kutako International Airport, as well as between Kasane, a popular tourist hub, and Hosea Kutako International Airport.
LOGISTICS
Namibia’s logistic sector is supported by the best road infrastructure in Africa, two international airports (Hosea Kutako and Walvis Bay), six other airports and two harbours. The country has positioned itself as a logistics hub for the SADC and is linked to Angola, Botswana, South Africa, Zambia and the Democratic Republic of Congo by four transport corridors.
The sector provides a diversity of efficient services such as logistics supply chain operations, warehousing, customs clearing, freight forwarding, cargo handling, stevedoring, container transport, overnight cross-border and domestic courier services.
TRANSPORT AND LOGISITICS AT A GLANCE
- Airports: two international airports (Hosea Kutako and Walvis Bay) and six domestic airports managed by the Namibia Airports Company
- Road infrastructure: Ranked best in Africa. Over 8,300 km of the country’s 49,000-km network is tarred, while over 25,000 km is standard gravel. The remainder is earth gravel, sand and tracks.
- Ports: Walvis Bay on the central coast and Lüderitz on the southern coast • Railway network: 2,687 km linked to South Africa and southern Angola
- Walvis Bay Corridors: four transport corridors link the ports of Walvis Bay and Lüderitz to South Africa, Angola, Botswana, Zambia and the Democratic Republic of Congo
VITAL CONTACTS
Automobile Association of Namibia (AA)
P O Box 61, Windhoek
+264 61 244 201
aa-namibia.com
Namibia Logistics Association (NLA)
P O Box 905546, Windhoek
+264 81 724 3169
nla.org.na
Trans Kalahari Corridor Secretariat (TKCS)
P O Box 23017, Windhoek
+264 61 250 071
tkcmc.com
Walvis Bay Export Processing Zone Management Company (WBEPZMC)
P O Box 3304, Walvis Bay
+264 64 201 3206
Roads Authority (RA)
Private Bag 12030, Windhoek
+264 61 284 7000
ra.org.na
Road Fund Administration (RFA)
Private Bag 13372, Windhoek
Toll-Free: 0800 433 300
+264 61 433 3000
rfanam.com.na